Arizona Real Estate Practices

Arizona state law does not require attorney or abstractor involvement; however policies must be issued by a licensed issuing agent with Dept. of Insurance with an Arizona licensed title insurer. Arizona Revised Statutes requires, among other things, that you must maintain a title insurance plant for any county (that you issue a title insurance policy) that has over 100,000 people based upon that last decennial census. The link for Arizona Department of insurance is: http://www.id.state.az.us/index.html. Title plant maintenance includes being a lessee or joint owner of a title plant. Alternatively, you may base your title policy on a title policy issued to you from a title insurer who does maintain such a title plant in the respective county or counties.

Arizona permits, but does not require, a cancellation/commitment fee.

Title insurer has statutory authority to release subject to the requirements in A.R.S. 33-707.

Warranty Deeds and Special Warranty Deeds are generally used. Quit Claims are generally not used in sale transactions and are generally not insurable, but would be reviewed on a case-by-case basis.

Yes, 6-843 (9-4-19)

A non-title holding spouse is required to join in the execution of a deed or deed of trust unless the property is held by the vested spouse as his or her sole and separate property and a properly executed disclaimer deed from the non-title holding spouse has been recorded, and there have been no intervening transactions. A.R.S. 25-211 (Community Property) and A.R.S. 25-214 (Management and Control of Community Property)

No.

(a) Owner’s Policy?
(b) Transfer Tax & Recording Fee?
(c) Survey Charges?
(d) Closing/Settlement Fees?

(a) Owner’s policy: typically, seller
(b) Transfer tax and recording fee: usually split depending on agreement
(c) Survey charges: usually split depending on agreement
(d) Closing/settlement charges: usually split depending on agreement

Countersigned by the issuing agent.

Real estate taxes are paid in two installments. The first installment of one-half taxes is due Oct. 1 (delinquent after Nov. 1) and the second installment of the remaining one-half is due the following March 1 (delinquent after May 1). Thereafter, subject to sale the following year. By state law interest is assessed at 16% per annum prorated monthly. If the taxes, penalties and interest are not paid in full within 13 months, an advertising fee of 5% or $5.00, whichever is greater, is assessed and during the sixteenth month the Treasurer's Office offers a tax lien on the property for sale. If the tax lien is not redeemed within three years from the date of sale, the purchaser may initiate foreclosure proceedings. See: http://treasurer.maricopa.gov/

Please consult with a local underwriter for additional information relating to real estate taxes on the subject property.

(A) There is no state law requiring a minimum period of time for a title search but a title plant must typically have a minimum 40 year chain;
(B) There is not a marketable record title act;
(C) No other applicable state requirements.

While not typically charged, they are charged on occasion if special searches are done.

Who can be listed as the trustee on the Deed of Trust (e.g., residency and/or natural person requirements, etc.)? Can an underwriter or title agent be designated as the trustee, and, if so, is it customary?

Deeds of trusts are used typically. Mortgages are rarely used, but can be used.

1. Any defect, lien, encumbrance, adverse claim, or other matter that appears for the first time in the Public Records or is created, attaches, or is disclosed between the Commitment Date and the date on which all of the Schedule B, Part I - Requirements are met.

2. Taxes and assessments collectible by the County Treasurer, not yet due and payable for 202__ [THE CURRENT TAX YEAR – to be updated as needed].

3. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings whether or not shown by the records of such agency or by the Public Records.

4. Any facts, rights, interest or claims which are not shown by the Public Records but which could be ascertained by an inspection of the land or by making inquiry of persons in possession thereof.

5. Easements, liens or encumbrances, or claims thereof, which are not shown by the Public Records.

6. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the Public Records.

7. (a) Unpatented mining claims,

    (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof,

    (c) water rights, claims or title to water.

8. Any right, title, interest, estate or easement in land beyond the lines of the area specifically described or referred to in Schedule A, or in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing in this paragraph shall modify or limit the extent to which the ordinary right of an abutting owner for access to a physically open street or highway is insured by this policy.

 9. Any lien, or right to a lien, for services, labor or material heretofore or hereafter furnished, imposed by law and not shown by the Public Records.

 10. Minerals of whatsoever kind, subsurface and surface substances, including but not limited to coal, lignite, oil, gas, uranium, clay, rock, sand and gravel in, on, under and that may be produced from the land together with all rights, privileges and immunities relating thereto, whether or not appearing in the Public Records or listed in Schedule B. The Company makes no representation as to the present ownership of any such interests. There may be leases, grants, exceptions or reservations of interests that are not listed.

 11. Rights of parties in possession. 

The policies are the same. Please consult a local underwriter for information relating to any special endorsements that may be offered in the state.

The Arizona Department of Insurance and Financial Institutions is the governing body where both rates and forms are filed. See their website at https://difi.az.gov/.

No.

Yes, a usury endorsement is available. The statutory maximum rate of interest is 10% per annum, unless a different rate is contracted for in writing, in which case any rate of interest may be agreed upon. ARS 44-1201.

Usury also constitutes a misdemeanor crime. ARS 13-2208.

Arizona has no state withholding requirements in addition to FIRPTA.

Notarized only; no witnesses are typically required unless the notarization requires it, such as person executing is blind, marks with an X.